Cradle Arc grants options for acquisition of Luiri gold mines

AIM-quoted Cradle Arc, the African focused base and precious metals exploration and production company, has granted Singa Holdings Zambia an option to establish a joint venture and/or an option to acquire the entire issued share capital of Luiri Gold Mines.

Luiri Gold Mines is wholly-owned subsidiary of Cradle Arc, which holds the Matala and Dunrobin gold assets in Zambia.

“The development of our Zambian gold assets has long been an important goal for the company, says Cradle Arc CEO, Kevin van Wouw.

"We are, however, extremely mindful of the potential dilution that raising equity funds for the development of Matala could have on existing shareholders at the company’s current share price, and we therefore consider that this partnership with Singa represents the best path towards potential production in the near to mid-term.

“Should the share option be exercised, the total amount payable to Cradle Arc would, in our view, represent fair value given the project’s current stage of development and will support our future strategy.

"On exercise of the share option, Cradle Arc will receive US$2.5 million, which will contribute towards the cost of the planned dense media separation upgrades at the group’s Mowana copper mine, together with the potential future royalty stream,” concludes van Wouw.